As we enter 2015, technology is advancing at paces never before anticipated, and we seem to be walking naked into the land of uncertainty. And so, as we venture forward into the future, the least we can do is learn some lessons from the past. Here are three epic corporate fails business leaders should be aware of:

1. Pay By Touch

We all remember the hype of Y2K, and the prevalent global belief that the computers would rise up against us in the new millennium, to finally finish off us humans. But, what we remember less is the hype of investing in technology start-ups around that time.

John P. Rogers, in particular, had succeeded in raising $340 million, for his company Pay By Touch which promised to revolutionize digital payments. Pay By Touch had employed 800 people, and had established partnerships with large retail chains which had set up fingerprint detectors at their registers so as to identify payers through the stamp of a finger. But, something went horribly wrong… with Rogers.

One girlfriend accused Rogers of physically abusing her, while another had him arrested for thrashing her apartment after a break-up. In 2004, Rogers was arrested by Minneapolis police for cocaine use while operating a vehicle. Financial analysts concluded that while Rogers was a charismatic and successful fundraiser, once he got the power, he couldn’t handle the responsibility and sunk his start-up to the ground, often spending $8 million per month.

 

2. Kodak

You might remember a phrase from the nineties: “Make it a Kodak moment.” And if you have friends that are hipsters, then you may have heard that phrase recently, as well.

However, although Kodak was frequently rated one of the world’s most valuable brands as far back as the 70′s, the company’s demise seems to have been sealed. In January 2012, Kodak filed for Chapter 11 bankruptcy. The company is still in existence, but due to its heavy debts and continuous quarterly losses of up to $222 million per quarter, the brand is simply not what it used to be. So, what happened?

In 1975, Kodak invented the digital camera, the child which would eventually rise up and slay its father. Kodak underestimated the pace by which digital would overtake traditional film-roll photography. As competitors perfected the digital technology, both for pictures and videos, and provided products which could sync that media onto PC’s and Mobile Devices, Kodak lost its monopoly.

3. Blockbuster

I don’t know about you, but as a kid, one of my favorite activities on a Friday night was riding out to my local Blockbuster with the fam, and renting some sweet VHS films. I can recall walking up and down the aisles and browsing the selections: New Releases, Dramas, Comedies, Action Films, and more! But, five years ago, I took a trip back to my hometown and saw my beloved Blockbuster had turned into a Chinese food place. So, what happened?

Well, like Kodak’s demise, Blockbuster’s downfall lies in global technological evolution. When DVD’s replaced VHS, Blockbuster was still standing. But, when films became available for streaming on the internet, Blockbuster couldn’t keep up.

Interestingly enough, several Hi-Tech companies have created business models which capitalize on the online-streaming trend. Netflix, and Hulu, in particular, have gained a loyal base of consumers willing to pay subscription-based fees to stream movies and TV shows legally. It is safe to say that, if Blockbuster execs would have kept their head in the game, they may have still been prospering today.

 

Summary

So, what can business leaders do to stay afloat? For one thing, don’t do heavy drugs!

Secondly, leaders need to constantly be scanning out the competition. Who’s offering what, and at what prices? If changes in the market mean you need to open new divisions, or branches, for your business, then, so be it.

Innovate leaders need to be willing to take risks, and they can’t afford to stick their heads in the ground when things get tough. Vision should be praised within your organization, as should “loose cannons.”

Finally, by signing up for an account with Banc De Binary, you can have access to a personal account manager who monitors the global trends on your behalf. At Banc De Binary, we keep you informed on the latest news, and insure that you don’t get left behind!